The major averages tumbled as Treasury yields took off, increasing the jitters about valuations of riskier assets.
The Nasdaq (COMP) -3.5%, which features the most high-valuation tech names, was the hardest hit. I fell the most since October.
The S&P (SP500) -2.5% and Dow (DJI) -1.8% also tumbled.
The bond selloff accelerated, with largely encouraging economic data giving the bears no reason to slow down.
The 10-year Treasury yield topped 1.61% after the auction before settling back. It was up 14 basis points to 1.53%. Real rates also rose, with the 10-year TIPS yield climbing 18 basis points to -0.63%.
“With our economy and the global economy still far below full strength, I expect underlying inflationary pressures to remain subdued for some time," New York Fed President John Williams said this afternoon.